Abstract: In this research, the vital factors responsible for the demise of many dotcoms are identified and investigated. A mediator model is presented to explore possible relationships among the exogenous and endogenous variables in accordance with business and technology strategies. Two major analyses are conducted to examine the primary causes for dotcom failure. The first analysis examines the relationships between exogenous and endogenous variables based on the quasi-empirical findings from 50 failed dotcoms. The second analysis conducts a non-parametric correlation analysis of the variables. The results indicate that exogenous variables, fund and competition, influence the endogenous variables, staff, front-end operation, back-end operation, and business strategy. The practical implication of this study is to provide current and future dotcoms with another angle of view for assessing and adjusting their strategic position by evaluating those critical determinants and their inter-relationships so that a robust business model can be implemented.
